(AOF) – Credit card issuer American Express revealed profits higher than expectations and reaffirmed its annual objectives. In the third quarter, the company reported net income up 30% to $2.45 billion, or $3.30 per share. Earnings per share came in above consensus at $2.94. Its revenues increased 13% to $15.38 billion while Wall Street expected $15.33 billion.
American Express posted a cost of risk of $1.23 billion, up sharply from the previous year: $778 million. Wall Street was targeting $1.18 billion.
“We recorded another quarter of record revenues and earnings per share,” said CEO Stephen J. Squeri.
This year, the company still expects earnings per share of $11 and $11.40, compared to a consensus of $11.04. Revenues are expected to increase by 15% to 17%.
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Despite the turbulence, fintechs stay the course
According to BCG, in mid-2021, all listed fintechs in the world were valued on average twenty times their revenues, or a valuation of around $1.3 trillion. This figure had multiplied by more than four in three years. At the end of 2022, this multiple was divided by five, with average valuations limited to four times revenue. Nevertheless, BCG considers that the sector should record a jump in growth by 2030, with a six-fold increase in revenues for fintechs. After payments, development should mainly come from fintech banking, with the rise of turnkey services for businesses and professionals (“banking-as-a-service”).